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Fuel Surcharges Are Up: What Companies Can (and Can't) Control
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Indonesia's domestic fuel surcharge cap is now 40%, and international airlines are adjusting too. Here's what companies can't change, and the practical levers they still have over travel costs.
A fuel surcharge is an extra charge airlines add to ticket prices to cover the cost of jet fuel, and in Indonesia it has risen again. For domestic economy flights, the charge from 1 October 2026 can be up to 40% of the government's upper fare limit. Companies can't change that number, but they can control when they book, how their people travel and how their budgets absorb the change.
For businesses that send staff around Indonesia every week, a higher charge shows up quickly in the travel budget. The good news is that the parts of travel spending a company can influence are often bigger than the surcharge itself. The key is knowing which is which.
A fuel surcharge is a separate cost component in an airline ticket that reflects the price of aviation fuel, known in Indonesia as avtur. It sits on top of the base fare and is usually shown as its own line in the fare breakdown.
In Indonesia, the charge on domestic economy flights is regulated. It is set by the Directorate General of Civil Aviation as a maximum percentage of the upper fare limit (tarif batas atas) for each route group, and it is reviewed based on avtur prices. On international routes, these charges are set by each airline and change according to their own schedules.
The main driver is the price of jet fuel. The after-tax avtur price at Soekarno-Hatta rose by 6.49% at the start of September 2026, to Rp22,471 per litre, and the average avtur price used for October was Rp23,315 per litre. Officials have linked the increase to global oil prices and geopolitical conditions.
In response, the Ministry of Transportation raised the maximum from 30% to 40% for domestic economy fares. From 1 October 2026, airlines can apply a surcharge of up to 40% of the upper fare limit. The ministry has stressed that this is a ceiling, not an automatic increase, so airlines may charge less depending on their strategy and the market.
Some parts of the cost sit completely outside a company's hands. Being clear about them avoids wasted effort and unrealistic budget targets.
Avtur prices follow global oil markets and exchange rates. No travel policy will change them, and they can move from month to month.
For domestic economy flights, the maximum surcharge is set by regulation and reviewed regularly. Companies can follow the announcements, but they can't negotiate them.
Within the cap, each airline decides how much surcharge to apply on each route. International airlines set their own surcharges entirely. Two flights on the same day can carry very different costs.
While fuel costs are fixed by others, the total cost of a trip still depends heavily on decisions made inside the company.
Booking earlier usually gives access to lower base fares, which reduces the overall ticket price even when the surcharge is high. On international routes, many airlines apply the surcharge that is valid on the ticket issue date, so knowing when a surcharge change takes effect can help with timing.
Some trips can be done another way. Between Jakarta and Bandung, the Whoosh high-speed train is a practical alternative that doesn't carry an airline fuel surcharge. Combining several meetings into one trip, or holding a first meeting online, can also cut the number of flights.
Travel policy decides which fare types, cabin classes and add-ons staff can book. Clear rules, such as economy for short domestic flights and flexible fares only when schedules are likely to change, keep costs predictable without making travel harder.
A budget that assumes last year's fares will be overspent. Building a buffer for fuel-related changes, and reviewing it when surcharges are announced, keeps finance from being surprised at month end.
Use this list to review your company's travel spending:
Follow monthly surcharge announcements for domestic flights
Book domestic trips earlier wherever plans allow
Check whether a train or road option makes sense for short routes
Combine meetings to reduce the number of trips
Review cabin class and fare rules in the travel policy
Look at the fare breakdown to see how much of each ticket is surcharge
Add a fuel-related buffer to quarterly travel budgets
Track average ticket cost per route over time
These steps help finance and HR respond calmly rather than cutting travel in a hurry.
Identify your company's most-travelled routes and how many trips each one takes per month.
Compare recent ticket prices on those routes with the same period last year.
Estimate the extra monthly cost based on current surcharge levels.
Decide which trips are essential, which can be combined and which can move online.
Update the travel policy on booking lead times and fare types.
Add a buffer to the travel budget and agree who approves spending above it.
Review the numbers each month when new surcharge levels are announced.
Bliink is a corporate travel management platform for companies in Indonesia and Southeast Asia. It brings flights, trains, hotels and approvals into one place, so travel managers can compare options for each trip and apply company policy at the moment of booking. Consolidated invoices give finance a clear view of what each route is costing, which makes changes in fuel costs easier to track.
Fuel surcharges will keep rising and falling with the price of oil. What companies can do is plan better, book smarter and keep travel costs visible. If you'd like help doing that for your team, have a chat with Bliink.
FAQ
Clear answers, the way your concierge would put them.
A fuel surcharge is an extra charge airlines add to the ticket price to reflect the cost of jet fuel. It sits on top of the base fare and is usually shown separately in the fare breakdown. In Indonesia, domestic economy fuel surcharges are capped by the government, while international airlines set their own.
From 1 October 2026, airlines can apply a fuel surcharge of up to 40% of the upper fare limit for each route group on domestic economy flights. This follows the Ministry of Transportation raising the cap from 30% in September. The 40% is a maximum, so actual surcharges can be lower depending on the airline and route.
Fuel surcharges follow the price of jet fuel, which moves with global oil prices, exchange rates and geopolitical events. In Indonesia, the domestic surcharge level is reviewed against avtur prices and announced by the Directorate General of Civil Aviation. International airlines review their own surcharges on their own schedules, often every month or two.
Not on flights, because the surcharge is part of the ticket price. Companies can reduce its impact by booking earlier to get lower base fares, combining trips, holding some meetings online and using alternatives such as the Whoosh train between Jakarta and Bandung, which doesn't carry an airline fuel surcharge.
Start with your most-travelled routes and compare current fares with last year. Estimate the extra monthly cost, add a buffer to the travel budget and agree who approves spending above it. Review the figures each month when new surcharge levels are announced, so finance is never surprised at month end.
Booking earlier mainly lowers the base fare rather than the surcharge itself, but that still reduces the total ticket price. On many international routes, the surcharge applied is the one valid on the date the ticket is issued, so issuing tickets before an announced increase can also help.
